Initial reports on Apple's iOS 4.1 update confirm what we already knew and what AppleCare is telling to customers: The iPhone software update doesn't fix the iPhone 4's antenna problems. The good news is that it fixes the bar display.
According to iPhone 4 users in MacRumors forums, the iOS 4.1 update doesn't solve their reception and transmission problems.
They claim that touching the antenna on its death spot makes the signal drop as before. That means that, if you were experiencing voice degradation, dropping calls, and slow or no internet access, you will still experiencing those problems.
But as promised by Apple, the update will give a better reading of the actual signal. That's good. It means that people will not longer be seeing bar signal drops from five bars to one, like this article explains. It is a necessary, albeit purely cosmetic, fix.